HomeMy WebLinkAbout4071
RESOLUTION NO. 4 0 7 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR
TO NEGOTIATE AND EXECUTE A CONTRACT WITH KEN
NELSON FOR THE PURCHASE OF PROPERTY AT 122
SOUTH DIVISION STREET IN AUBURN, WASHINGTON
WHEREAS, the City of Auburn has the opportunity to collect its properties as a
part of its Downtown Community Revitalization Plan; and
WHEREAS, in order to effectively package its properties for their proper
development, it is appropriate that the City purchase property from Ken Nelson for the
purchase of property at 122 South Division Street, within the corporate limits of the City
of Auburn.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES as follows:
Section 1. That the Mayor is authorized to negotiate and execute an agreement
in substantial conformity with the Agreement attached hereto, marked as Exhibit "A" and
incorporated herein by this reference.
Section 2. That the Mayor is authorized to implement such administrative
procedures as may be necessary to carry out the directives of this legislation.
Section 3. That this Resolution shall take effect and be in full force upon
passage and signatures hereon.
Dated and Signed this -y~' day of ~CQA.;-\- , 2oolL.
CITY OF AUBUR
.-
~
P
~
. LEWIS, MAYOR
Resolution No. 4071
August 1, 2006
Page 1
ATTEST:
~~
Danielle E. Daskam,
City Clerk
APPROVED AS TO FORM:
Resolution No. 4071
August1,2006
Page 2
.w
\/(1 ~tD3tc..{
REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF AUBURN
This Agreement is rnade and entered into by and between the purchaser, CITY OF
AUBURN (the "City"), and Ken Nelson (the "Seller").
WITNESSETH:
Whereas, the City and the Seller are desirous of entering into an agreement
whereby the City will purchase property owned by the Seller.
NOW, THEREFORE, in consideration of the following terms, conditions and
covenants and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, IT IS AGREED by the parties as follows:
1. SALE OF PROPERTY. The Seller shall sell, convey and transfer to the City,
and the City shall purchase, acquire and take from the Seller, the real property generally
located at 122 South Division Street, in the City of Auburn, King County, Washington,
98002, legally described as:
Lot 5, Block 6, Town of Slaughter, according to the plat thereof recorded in
Volume 2 of Plats, Page 56, in King County, Washington.
Tax Parcel No. 7815700300.
and all herediments, appurtenances, improvements, and buildings belonging or in any
way appertaining to the "Property".
2. EARNEST MONEY DEPOSIT. The City agrees to pay herewith One Hundred
US Dollars ($100.00) as earnest money, in the form of a City of Auburn promissory note to
be deposited with the closing agent as part payment on the purchase price. payable to the
Seller upon closing.
3. PURCHASE PRICE. The purchase price for the Property is FIVE HUNDRED
THOUSAND US Dollars ($500,00.00). The parties acknowledge that the purchase price
represents the fair market value of the Property. The agreed upon amount is payable by
City Vtl8lII'8llIt at closing.
~ t:.~$l..
4. CONDITION OF PROPERTY. Unless otherwise described in this paragraph the
City offers to purchase the Property in an "as is" condition; with all physical defects,
except those identified in paragraph 12, herein, including those that cannot be observed
by casual inspection. Physical defects known to the Seller at the time of closing which are
not observable by casual inspection shall be disclosed to the City.
5. REPRESENTATIONS OF SELLER. The Seller hereby represents to the City
the following:
(A) To the best of the Seller's knowledge there are no pending special
assessments or condemnation actions with respect to 'he Property or any part thereof.
1 ~V '\" \O~ ofP
and the Seller has no knowledge of any special assessment or condemnation actions
being contemplated, and;
(B) There is no pending litigation or suit threatened or asserted which could result
in a lis pendens being lawfully filed against the Property, and; ,
(C) The Seller will cooperate with the City and execute. all documents necessary to
remove or release liens, assessments, encumbrances, mortgages or deeds of trust in
order to deliver to the City marketable title to the Property;
(D) The Seller has good and marketable title and fee simple to the Property, which
is not subject to any liens, encumbrances, restrictions, or easements of any kind except
those which have been disclosed on the Commitment for Title Insurance received by the
City; and
(E) Neither the execution of this agreement, nor the performance of any of the
terms or provisions hereof, violates, or shall violate, or conflicts with in any material aspect
or constitutes a default under, any existing contract document understanding, agreement
or instrument to which the Seller is a party, or by which the Seller may be bound.
6. CLOSING. The closing date shall be July 31, 2006, unless the Parties agree to
another time. The place of closing shall be at Chicago Title Insurance Co., 25668 104th
Avenue SE, Kent, Washington. The Seller shall be responsible and entitled to have all
closing documents reviewed by its own counselor agent prior to closing. The risk of loss
to the improvements, if any, on the Property prior to closing shall be Seller's and in the
event of damage or destruction, the City shall be entitled to terminate this agreement.
The City may postpone closing or terminate this agreement if it reasonably appears to the
City that the Seller has misrepresented the condition of title, marketability of the PropertY
or any other matter contained in Paragraph 4, above.
7. SELLER'S CLOSING DOCUMENTS. At the closing, the Seller shall produce
and execute:
(A) a Warranty Deed (The "Deed"), duly executed and acknowledged in a
recordable form, conveying to the City marketable title to the Property free and clear of all
liens, assessments, deeds of trust, mortgages, or encumbrances except those expressly
agreed to by the City;
(B) a detailed statement, prepared by the escrow officer and/or the closing attorney,
setting forth the appropriate adjustments and prorations to be made at the closing;
(C) a completed Seller's Disclosure Statement; and
(D) all other documentation reasonably required by the City.
8. EXPENSES.
A. Expenses of Seller. The Seller shall pay:
(i) real estate taxes prorated to the date of closing;
(Ii) all assessments, liens, mortgages, deeds of trust or other encumbrances
(I.e. real estate excise tax);
(Iii) the Seller's attorney fees; and
(iv) all other expenses incurred by Seller which relate to the Property;
(v) title insurance premiums.
B. Expenses of City, The City shall pay:
(i) all recording fees;
(Ii) its attomey fees;
(iii) real estate taxes due after the closing date, if any.
2 +",J 1-IO~d (;,
9. POSSESSION. The Seller shall deliver "legal" possession of the Property to the /
City on the date of closing. ;0"""""'1- _.__d.......4flHds ...1-11<<1' -t1Iu~ ~ f"..e +r110lt..T") ""
/"':'1 4'V' -rA-l. ;J/>>,~rl./I+ tAJtII1lt5~tL~ /ev,d,t.,..--t r~~~I\$lb,IJ""h~s II(
J/.tl..~~-d6 10. TIME. Time is ofthdessence of this Agreement. I t:>/~/Ht '
11. TITLE EXAMINATION. This Agreement is subject to and conditioned on the
Seller providing to the City clear title to the real property, to the City's satisfaction, as
shown on a Policy of Title Insurance covering the purchase of the Property in the amount
of the cash purchase price, provided and paid for by the Seller. In the event that Seller is
unable to cure any title encumbrances which are unacceptable to the City, the City may at
its option: (1) terminate this agreement by written notice, whereupon no party shall have
any further liability under this agreement; or (2) postpone the date of closing for up to sixty
(60) days, during which time Seller shall use all reasonable efforts and expend reasonable
sums as may be necessary to cure the objections of the City. If the objections to title are
not cured on or before the closing date, as postponed, the City may terminate this
agreement or waive the objections to title.
12. COMMISSION. The Seller warrants and represents to the City that if any real
estate brokerage commission or fees are payable, the Seller hereby indemnifies the City
from and against any and all claims for any real estate brokerage commission fees which
may arise as a result of any acts of the Seller. The Seller will pay any real estate fees at
closing, unless agreed otherwise.
13. HAZARDOUS WASTE. To the best of the Seller's knowledge the Property is
not in violation of any federal, state or local law, ordinance, or regulation relating to the
environmental conditions on, under, or about the Property, including but not limited to, soil
and ground water conditions, and that during the time in which the Seller owned the
Property, neither the Seller nor, to the best of the Seller's knowledge, any third party has
used, generated, stored, or disposed of, on, under, or about the Property or transported to
or from the Property any hazardous waste, toxic substances, or related materials (the
"Hazardous Materials"). For the purposes of this paragraph, Hazardous Materials shall
include, but is not limited to, substances defined as "Hazardous Substances," "Hazardous
Materials," "Hazardous Waste," "Toxic Substances," in the Comprehensive Environmental
Response Compensation and Liability Act of 1980, as amended, and RCW Title 7 and the
regulations promulgated pursuant to such laws.
The Seller will indemnify and hold harmless the City from all required remediation,
damage, claim or loss (including attorney fees incurred in defending any claim) arising
from the placement, storage, disposal or release on the Property of any Hazardous
Materials during such time as the Seller was in possession or had any interest in the
Property. This indemnification and hold harmless shall survive and not be merged into the
deed delivered by the Seller to the City for the Property.
If prior to the closing date the City discovers that the Property contains any
Hazardous Waste, of which it has not been previously advised, the City may terminate this
Agreement.
14. CONDEMNATION. The City and the Seller acknowledge that the Property
being sold/purchased hereunder is not being purchased under the threat of condemnation
pursuant to RCW Title 8.
3
15. NOTICES. Any notices required or permitted to be given shall be in writing and
delivered either in person or by certified mail, return receipt requested, postage pre-paid,
addressed as follows or such other address as may be designated by either party:
City:
Dave Baron
Office of the Mayor
City of Auburn
25 W. Main St.
Auburn WA 98001
Copy to:
Office of the City Clerk
25 W. Main St.
Aubum WA 98001
Seller:
Ken Nelson
Nelson's Jewelry
101 East Main Street
Aubum, W A 98002
Any notice given pursuant to this Agreement shall be deemed effective the day it is
personally delivered or three (3) business days after the date it is deposited in the United
States mails.
16. ENTIRE AGREEMENT/MODIFICATION. This written Agreement constitutes
the entire and complete Agreement between the Parties hereto and supersedes any prior
oral or written agreements between the Parties with respect to the Property. It is
expressly agreed that there are no verbal understandings or agreements, which in any
way change the terms, covenants, and conditions herein set forth. No modifications of
this Agreement and waiver of any of its terms and conditions shall be effective unless in
writing and duly executed by the Parties hereto.
17. BINDING EFFECT. All covenants, agreements, warranties and provisions of
this Agreement shall be binding upon and inure to the benefit of the Parties hereto and
their respective heirs, executors, administrators, personal representatives, successors
and assigns.
18. CITY COUNCIL APPROVAL. The Seller acknowledges that this Agreement
does not bind the City of Aubum until (1) the Mayor executes the Agreement and (2) the
City Council approv~s thJ Ag~e men~ v A 1 ~ 'S-ll (,c...., 114- ~ i.Nh... ~d vi ~ d
hit. j Ili./N4d<-/ PH", rlPVltC.f/"l.
_~ 19. SELLERblSCLO RE STATEMENT. The Seller shall, within five (5) days of
>(-V accepting this Agreement, deliver to the City a completed, signed and dated Real Property
Transfer Disclosure Statement substantially in the form set forth in RCW 64.06.020. The
City shall within three business days, or as otherwise agreed to, after receipt of the Real
Property Transfer Disclosure Statement have the right to (1) approve and accept the Real
Property Disclosure Statement; or (2) rescind this Agreement pursuant to the City's sole
discretion. If the City elects to rescind the Agreement, the City will deliver written notice of
rescission to the Seller within the above three (3) business day period, or as otherwise
agreed. Upon delivery of a rescission statement, the City shall be entitled to immediate
4
'return of all deposits and other consideration paid to Seller. If City does not deliver a
written rescission notice, the Real Property Transfer Disclosure Statement will be deemed
approved.
20. DEFAULT AND ATTORNEY'S FEES. In the event that either party fails,
without legal excuse, to perform any obligation under this Agreement, then the other party
may, at its option, bring suit against the party failing to perform for the other party's actual
damages, or pursue any other rights or remedies available at law or in equity.
If either party institutes suit concerning this Agreement, the prevailing party is
entitled to its court costs and reasonable attomey's fees. In the event of trial, the court
shall fix the amount of the attorney's fees. Venue of any suit shall be in the county in
which the property is located, and this Agreement is to be governed by the laws of the
state where the property is located.
21. REPRESENTATION. EACH OF THE PARTIES SHALL SUBMIT THIS
AGREEMENT TO THEIR ATTORNEYS AND TAX SPECIALISTS FOR THEIR REVIEW
AND APPROVAL PRIOR TO SIGNING THIS AGREEMENT. NO REPRESENTATIONS
OR WARRANTIES ARE MADE BY ONE PARTY TO THE OTHER PARTY AS TO THE
LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS
AGREEMENT, THE TRANSACTION DESCRIBED HEREIN, OR ANY ATTACHMENTS
TO THIS AGREEMENT.
22. AGREEMENT TO SELL AND TIME LIMIT FOR ACCEPTANCE. The Buyer
offers to buy the pro~rty on the above terms and conditions, The Seller has until midnight
of .::r",\... ~ , 20~ to accept this offer (if not filled in, the day following the Buyer's
signature' date below.) Acceptance is not effective until a signed copy hereof along with
any earnest money is actually received by the office of Closing Agent. If this offer is not so
accepted, It shall lapse. ~ ~ -I -<':)
fO-O~ ..Ji< !I-.ldnl..dt,t.\A;. --<.. r/~;;"'I /~
23. SIGNATURES: '1r\~.j ~r< ..fG., a~.rrJ~cI A~ ~"''''fM.~.er.
CITY: .(V" I SELLER :J>" ,. I- J I
PETER B. LEWIS, MAYOR ( {)
CITY OF AUBURN -:-1<f't> t\')e\ \1\"
25 W. MAIN ST, (print name)
AUBURN WA 98001 ...
one) 1(\ \ E a. ,-L.n1o.. ,..... <.. t
ax) (address)
2~s-5S 3s--F5'(Q.f)
(phone #)
'?-C;'$- ~ 3:S-~7<f 'Z
(fax #) tL
(Zture)
'1-lo-t> Gt
(date)
signature)
, I:~A~
(date)
5
.,
Addendum to Real Estate Purehase and Sale A2I'eement
The parties hereto, the City of Auburn (Buyer) and Ken Nelson (Seller) herewith amend
their Real Estate Purchase and Sale Agreement of even date as follows:
(1) After closing, the Buyer may continue to use to property for employee parking
until written notice from the City.
(2) 1031 EXCHANGE. The parties acknowledge and agree the Seller desires to
consummate this transaction as a 1031 Tax Deferred Exchange and has appointed
(OPTION: TAX DEFERRED EXCHANGE SERVICES, INC.,Pine Street
Professional Center, 3730 South Pine Street, Tacoma, Washington 98409), to act
as qualified intennediary on Seller's behalf. Buyer agrees to consummate this
transaction as a 1031 Tax Deferred Exchange provided Buyer realizes no
additional expenses or liability as a result of the consummation of this transaction
as an Exchange than Buyer would incur if this transaction closed as provided
herein without said Exchange. Buyer understands in so doing that they will not in
any manner be impacted by the exchange financially or from a liability
standpoint, but is doing so to allow Seller to meet the requirements of the Code
regarding tax deferred exchanged.
~
....
~
CIT AUBURN, ;;;-
Date~Q5
(print name)
Agreed to by:
:z d---
KEN NELSON
Date 7-1()-O~
CHICAGO TIlLE INSURANCE COMPANY
2S668104TI1AVENUESE, KENT, WA 98031
A.L T.A. COMMITMENT
SCHEDULE A
Order No.:
1216814
Title Unit: U-ll
Phone: (253)520-7691
Fax: (2S3)856-m5
Officer: LORI FORBES, PENNI WARREN, JANE PERRY
Costom.erNumber: NELSON/CITY OF AUBURN
Buyer(s): CITY OF AUBURN
Commitment Effective Date: JULY 18, 2006
1. Policy or Policies to be issued:
ALTA Owner's Policy
1992 STANDARD
30% DISCOUNT/RESIDENTIAL RESALE
RATE AND 10% DISCOUNT/COMBINATION
Pr~~ Insured:
CITY OF AUBURN
at 8:00 AM.
PREMIUM APPliCABLE BEIWEBN $480,001.00 - $500,000,00
Amount: $500,000.00
Premium: $ 939.00
Tax: 82.61
Policy or Policies to be issued:
ALTA Loan Policy
Amount: $0.00
Premium:
Tax:
Proposed Insured:
Policy or Policies to be issued:
ALTA Loan Policy
Proposed Insured:
Amount: $0.00
Premium:
Tax:
2 . The estate or interest in the land which is covered by this Commitment is:
FEE SIMPLE
3 . Title to the estate or interest in the land is at the effective date hereof vested in:
KENNETH NELSON, WHO ALSO APPEARS OF RECORD AS KENNETH A. NELSON, AS HIS
. SEPARATE ESTATE
4. The land referred to in this Commitment is described as follows:
SEE ATTACHED LEGAL DESCRIPTION EXHIBIT
COMMAlI05/ICLC/II.1.05
CHICAGO TITLE INSURANCE COMPANY
AL.T.A. COMMITMENT
SCHEDULE A
(Continued)
Order No.: 1216814
Your No.: _R/C!Zft or _VIllI
LEGAL DESCRIPTION EXHIBIT
(paragraph 4 of Schedule A continuation)
LOT 5, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF, RECORDED IN
VOLUME 2 OF PLATS, PAGE 56, IN KING COUNTY, WASHINGTON.
CLTAQ.fAIj/RDA/am
CHICAGO TITLE INSURANCE COMPANY
AL. T.A. COMMITMENT
SCHEDULE B
Order No.: 1216814
Your No,: JJBLSOR/CXTlC 01' A1IBtrItJI
Schedule B of the policy or policies to be issued will contain exceptions to the following matters
UDless the same are disposed of to the satisfaction of the Company.
GENERAL EXCEPTIONS
A. Rights or claims of parties in possession not shown by the public records.
B. &croachments, overlaps, boundary line disputes, or other matters which would be disclosed by an
accurate survey and inspection of the premises.
C. Easements, or claims of easements, not shown by the public records.
D. Any lien, or right to a lien, for contn'butiollS to employee beuefitfunds, or for state workers'
compensation, or for services. labor. or material heretofore or hereafter furnished, all as
imposed by law, and not shown by the public records.
E. Taxes or special assessments which are not shown as existing liCIIS by the public records.
F. Any service. installation, connection, maintenance. tap, capacity or construction charges for sewer, water.
electricity, other utilities, or garbage collection and disposal.
G. Reservations or exceptions in patents or in Acts authorizing the issUllJlce thereof;
Indian tribal codes or regulations, Indian treaty or aboriginal rights. including easements or equitable servitudes.
H. Water rights, claims. or title to water.
I. Defects, liens. encumbrances. adverse claims or other matters, if any, created, first appearing in the
public records, or attaching subsequent to the effective date hereof but prior to the date the
proposed insured acquires of record for value the estate or interest or mortgage thereon covered by
this Commitment.
SPECIAL EXCEPTIONS FOLWW
WLTACOMB/IlDA/D999
CHICAGO TITLE INSURANCE COMPANY
AL.T.A. COMMITMENT
SCHEDULE B
(Continued)
Order No.: 001216814
Your No.:
SPECIAL EXCEPTIONS
A 1. PAYMENT OF THE REAL ESTATE EXCISE TAX, IF REQUIRED.
THE PROPERTY DESCRIBED HEREIN IS SITUATED WITHIN THE BOUNDARIES OF
LOCAL TAXING AUTHORITY OF CITY OF AUBURN. PRESENT RATE IS 1.78%.
ANY CONVEYANCE DOCUMENT MUST BE ACCCMPANIED BY THE OFFICIAL
WASHINGTON STATE EXCISE TAX AFFIDAVIT. THE APPLICABLE EXCISE TAX
MUST BE PAID AND THE AFFIDAVIT APPROVED AT THE TIME OF THE RECORDING
OF THE CONVEYANCE DOCUMENTS.
. 2. GENERAL AND SPECIAL TAXES AND CHARGES, PAYABLE FEBRUARY 15,
DELINQUENT IF FIRST HALF UNPAID ON MAY 1, SECOND HALF DELINQUENT IF
UNPAID ON NOVEMBER 1 OF THE TAX YEAR (AMOUNTS DO NOT INCLUDE INTEREST
AND PENALTIES) :
YEAR:
TAX ACCOUNT NUMBER:
LEVY CODE:
ASSESSED VALUE-LAND:
ASSESSED VALUE-IMPROVEMENTS:
2006
781570-0300-02
0140
$ 69,000.00
$ 71,000.00
GENERAL & SPECIAL TAXES:
BILLED: $ 1,838.91
PAID: $ 919.46
UNPAID: $ 919.45
c 3. DEED OF TRUST AND THE TERMS AND CONDITIONS THEREOF:
GRANTOR:
KENNETH A. NELSON, TITLE IS VESTED
AS FOLLOWS: KENNETH NELSON, ALSO
KNOWN AS KENNETH A. NELSON, AS HIS
SEPARATE ESTATE
PACIFIC NORTHWEST TITLE COMPANY OF
WASHINGTON, INC.
STERLING SAVINGS BANK
$ 90,000.00
AUGUST 29, 2001
AUGUST 30, 2001
20010830002062
NOT DISCLOSED
TRUSTEE:
BENEFICIARY:
AMOUNT :
DATED:
RECORDED:
RECORDING NUMBER:
LOAN NUMBER:
a.TACMlll/RDA1....
CHICAGO TITLE INSURANCE COMPANY
A.L.T.A. COMMITMENT
SCHEDULE B
(Continued)
Order No.: 1216814
Your NO.:IIIIL8OlI/OX'n' 0,. """....
SPECIAL EXCBPTIONS
THE AMOUNT NOW SECURED BY SAID DEED OF TRUST AND THE TERMS UPON WHICH
THE SAME CAN BE DISCHARGED OR ASSUMED SHOULD BE ASCERTAINED FROM THE
HOLDER OF THE INDEBTEDNESS SECURED.
D MODIFICATION OF DEED OF TRUST AND THE TERMS AND CONDITIONS THEREOF:
DATED:
RECORDED:
RECORDING NUMBER:
MARCH 22, 2006
MARCH 23, 2006
20060323000470
. 4. ASSIGNMENT OF RENTS AND/OR LEASES AND THE TERMS AND CONDITIONS
THEREOF:
ASSIGNOR:
KENNETH A. NELSON, TITLE IS VESTED
AS FOLLOWS: KENNETH NELSON, ALSO
KNOWN AS KENNETH A. NELSON, AS HIS
SEPARATE ESTATE
STERLING SAVINGS BANK
AUGUST 29, 2001
AUGUST 30, 2001
20010830002063
ASSIGNEE:
DATED:
RECORDED:
RECORDING NUMBER:
, 5. IN THE EVENT THAT THE PROPERTY DESCRIBED HEREIN IS OCCUPIED BY A
MARRIED PERSON AND SPOUSE AS A Ha4ESTEAD, THE CONVEYANCE OR
ENCUMBRANCE OF THE PROPERTY MUST BE EXECUTED AND ACKNOWLEDGED BY BOTH
HUSBAND AND WIFE, PURSUANT TO RCW 6.13 WHICH NOW PROVIDES FOR AN
AU'I'CJoIATIC HCMESTEAD ON SUCH PROPERTY.
II 6. TBB LBGAL DBSCRI:PTION IN THIS COMICITJIBRT IS BASED ON INI'ORMATION
PROVIDED WITH '1'HB APPLICATION All]) '1'D PUBLIC RBCORDS AS DBPINBD IN THB
POLICY TO ISSUB. '1'HB PARTIBS TO '1'HB 170RTHCOMDTG TRANSACTION MOST
JWTIPY TBB TITLB INStJRANCB COMPANY PRIOR TO CLOSING IF THB DESCRIPTION
DOBS NOT CONFORM TO THBIR IaPECTATrONS.
. 7. THE POLICY REQUESTED IN THE APPLICATION FOR INSURANCE IS AN ALTA
Ha4EOWNER'S POLICY OF TITLE INSURANCE, ONE-TQ-FOUR FAMILY RESIDENCE.
SAID POLICY IS NOT AVAILABLE FOR THIS PROPERTY/TRANSACTION, AND THE
ALTA OWNER'S POLICY AS IDENTIFIED IN SCHEDULE A HEREOF WILL BE ISSUED
CLTACMB2/RDA/0999
CHICAGO TITLE INSURANCE COMPANY
A.L.T.A. COMMITMENT
SCHEDULE B
(Continued)
Order No.: 1216814
Your No.: -..oIl/ern- ow __
SPECIAL EXCEPTIONS
INSTEAD.
r NOTE 1:
COUNTY RECORDS INDICATE THAT THE ADDRESS OF THE IMPROVEMENT LOCATED ON
SAID LAND IS:
122 SOUTH DIVISION STREET
AUBURN, WASHINGTON 98001
or NOTE 2:
EFFECTIVE JANUARY 1, 1997, DOCUMENT FORMAT .AND CONTENT REQUIREMENTS
HAVE BEEN IMPOSED BY WASHINGTON LAW. FAILURE TO COMPLY WITH THE
FOLLOWING REQUIREMENTS MAY RESULT IN REJECTION OF THE DOCUMENT BY THE
COUNTY RECORDER OR IMPOSITION OF A $50.00 SURCHARGE.
FOR DETAILS OF THESE STATEWIDE REQUIREMENTS PLEASE VISIT THE KING
COUNTY RECORDER'S OFFICE WEBSITE AT WNW.NBTROKC.GOV/RBCBLBC/RBCORDS
.AND SELECT 0RI.D1B FORKS AIID 1l0C0MDrr STAllDAIl1lS.
THE FOLLOWING MAY BE USED AS AN ABBREVIATED LEGAL DESCRIPTION ON THE
DOCUMENTS TO BE RECORDED TO COMPLY WITH THE REQUIREMENTS OF RCW 65.04.
SAID ABBREVIATED LEGAL DESCRIPTION IS NOT A SUBSTITUTE FOR A COMPLBTE
LEGAL DESCRIPTION WHICH MUST ALSO APPEAR IN THE BODY OF THE DOCUMENT:
LOT 5, BLOCK 6, VOLUME 2 OF PLATS, PAGE 56.
BHIl 01' SCHBDULB B
L
TO EXPEDITE THE COMPLETION OF YOUR CLOSING, PLEASE FORWARD YOUR
CLOSING ORDER AND RECORDING DOCUMENTS TO:
CHICAGO TITLE INSURANCE COMPANY - CENl'RAL RECORDING
701 FIFTH AVENUE, 33RD FLOOR
SEATTLE, 'WASHINGTON 98104
THANK YOU,
UNIT n - SOUTHEND TITLE UNIT
Q.TAQOI2/RDA109!l9
@
CHICAGO TITLL ~NSURANCE COMPANY
701 FlFTII AVENUE, #3400, SEA TIlE, W A 98104
PHONE: (206)628-5600
FAX: (206)628-4725
IMPORTANT: This is Dot a Survey. It is furnished as a couvemeDce to locate the laud iDdicated hereon with
reference to streets aud other laud. No liability is assumed by reason of reliance hereon.
...
MAP
EXCLUSIONS (Cont'd.)
4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by
reason of the operation of federal bankruptcy, state Insolvency, or similar creditors' rights laws, that Is based on:
(i) the transaction creating the estate or interest Insured by this policy being deemed a fraudulent conveyance or
fraudulent transfer; or
(ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except
where the preferential transfer results from the failure:
(a) to timely record the instrument of transfer; or
(b) of such recordation to Impart notice to a purchaser for value or a judgment or lien creditor.
ALTA LOAN POLICY FORM (10-17-92)
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,
costs, attorneys' fees or expenses which arise by reason of:
1. ( a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances,
or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land;
(Ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (ill) a separe-
tion In ownership or a change in the dimensions or area of the land or any parcel of which the land is or was
a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental
regulatlons, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encum-
brance resulting from a violation or alleged violation affecting the land has been recorded in the public records
at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof
or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has
been recorded in the pUblic records at Date of Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of
Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding
on the rights of a purchaser for value without knowledge.
3. Defects, liens, encumorances, adverse claims or other matters:
(a) created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant
and not disclosed in writing to the Company by the Insured claimant prior to the date the Insured claimant became
an Insured under this policy;
(c) resuiting in no loss or damage to the Insured claimant;
(d) attaching or created subsequent to Date of Policy (except to the extent that this policy Insures the priority of the
lien of the Insured mortgage over any statutory lien for services, labor or material); or
(e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the
insured mortgage.
4. Unenforceablllty of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy,
or the Inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws
of the state In which the land Is situated.
5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction
evidenced by the Insured mortgage and Is based upon usury or any consumer credit protection or truth in lending law.
6. Any statutory lien for services, labor or materials (or the claim or priority of any statutory lien for services, labor or
materials over the lien of the insured mortgage) arising from an improvement or work related to the land which Is con-
tracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the
Indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to
advance.
7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason
of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws. that is based on:
(i) the transaction creating the interest of the Insured mortgagee being deemed a fraudulent conveyance or fraudulent
transfer; or
(i1) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable
subordination; or
(Iii) the transaction creating the interest of the Insured mortgagee being deemed a preferential transfer except where
the prehirentlal transfer results from the failure:
(a) to timely record the Instrument of transter; or
(b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.